Indonesia will propose a cumulative oil production cut of up to two million barrels per day for all member countries at the upcoming OPEC meeting in Vienna, a minister said Friday.
"In the next meeting in March, we (Indonesia) will propose a between 1.5 and two million barrel per day (bpd) oil production cut," Minister of Energy and Mineral Resources Purnomo Yusgiantoro said.
The proposed cut was to anticipate "global decline of consumption for oil" and "an increase of Iraq's oil output" in the market, Yusgiantoro told journalists at the Merdeka presidential palace.
The Organization of Petroleum Exporting Countries (OPEC) decided in mid-January to cut production by 1.5 bpd, effective from February 1 to steady the market.
Indonesia's oil production is currently at around 1.3 million bpd. United Arab Emirates Oil Minister, Obeid bin Saif al-Nassiri, said on Tuesday it was too early to talk of production cuts or hikes.
"It is premature to talk of a cut or increase in production by the member states of OPEC," said Nassiri, who underlined that the next OPEC meeting planned for March 16 in Vienna should "study the situation on the oil market and take appropriate decisions".
Saudi Arabia, the world's number one producer, said Tuesday it was "determined to maintain its oil policy that aims to guarantee equilibrium on the global market in a manner that preserves the interests of producer and consumer countries". Libya, Iran and Kuwait have also called for cuts.—AFP.
©--Agence France Presse 2001.
© 2001 Mena Report (www.menareport.com )